Daily Market Analysis March 25th, 2015

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Market News Jason KrugerGood morning,

After a morning of relief, yesterday saw the further recovery of the Eurozone. The Eurozone PMI increased to multi-year highs while on the declining side where the United Kingdom saw their CPI falling to 0% which was reported to be the lowest in analyzed prices. The prices of core products in the country saw lower levels at 1.2%, reported as the lowest since November last year.

Recreational goods, computers, games, books, hobbies and toys were the main contributors to the UK’s decrease in prices. Furnishings and food items also saw downward pressure on prices for February. There was a report that the Office for National Statistics did announce that there was no upward trend that would look at offsetting a change in the economy.

Perhaps there is hope?

This month could see some early deflation activity in the UK there are further declines in the prices of oil for March, while there might very well be some flicker of positivity that could be shining through all the negativity. The pace of the decreased prices could start to slow, which could bring limits to the severely of the deflation. Both rising in February are the factory and input prices which were a great recovery when compared to January. While the progress could be slow the materials and fuel costs that are paid by the manufacturer did decrease by 13.5% from 2015 to the end of February.

Even though, there are some glimmers of hope for the pound the BOE is still holding a lot back and the currency could very well be at risk for yielding low price potential.

On the opposing side, the EUR has some really positive news on the economic front. The PMI rose as mentioned and this was all earlier in the month. Thanks was given to the forceful French and German service sector PMI’s that exceeded expectations as well as the Citigroup index which remains close to its highest in 2 years.

On the technical side, the pair EUR / GBP reached a medium level at 0.7014 that had strengthened its major support level from 0.7000 that was reported to be at its lowest level since 2007. The pair continued to strengthen to the last minute yesterday and today may very well increase to over 0.7304.

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Today’s Trading Tip:

Have a look at the GBP that in my opinion will continue to see pressure and possible continue to decrees in the next few days. The Euro continues to surprise traders with its bullish trend in a turn that has bolstered the EUR/GBP to a stable 0.7301 support in the short term. The moves are all in the favor of the EUR – it’s about time that the Euro see some positivity, the 19-nation currency has seen some bad days.

Happy trading!

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Jason B Kruger

Professional Trader at WhyOptions
Jason B. Kruger is a Professional Trader & Chief Editor for WhyOptions.com, who is considered ‘The Authority’ on Binary Options Trading Strategies, Reviewing Brokers,Providers and their Products.
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